How retailers can leverage partnerships for rich and actionable data insights
Retailers are constantly faced with the question of whether to buy, build, or bridge. Should they make outright acquisitions, develop solutions internally, or partner with other companies?
There has been a growing trend towards bridge building, as retailers recognize the benefits of partnering with others. This approach allows them to be more agile and innovative, and to access expertise and resources that they may not have in-house.
Bridge building can be a particularly effective approach for retailers who are looking to innovate quickly and efficiently. By partnering with other companies, they can avoid the time and expense of developing solutions in-house, and they can gain access to the latest technology and best practices while getting the big picture when it comes to data.
This blog will explore the benefits of bridge building including the rich data that can come from it and some best practices for using that data to identify the right KPIs.
Data activation: Putting data into action
For a long time, stores have been asking for more information to help them run their businesses and make decisions. But the information they usually got was too much and hard to manage— like drinking from a data firehose— so they felt overwhelmed by all the information but couldn’t use it to its full potential.
Enter the concept of “data activation,” transforming raw data into tangible actions and insights. Data activation involves establishing a clear data strategy, investing in robust data infrastructure, and fostering a data-driven culture.
Retailers must outline specific business objectives for data utilization, encompassing data collection, analysis, and application. Robust data infrastructure and technology solutions help handle large data volumes, perform advanced analytics, and generate actionable insights. Encouraging a data-driven culture involves educating employees about data, promoting data-informed decision-making, and providing training and resources. This empowers employees to leverage data for problem-solving, innovation, and continuous improvement.
So, there is a data fire hose, and it’s just really important to know how to take it in and what to do with it.
The new KPIs
In the past 5-10 years, the retail landscape has been transformed by the introduction of new technologies in stores and the increased availability of customer data. This has led to a shift in the way retailers measure their success.
Previously, foot traffic was the primary metric used to assess a store’s performance. However, with the advent of online shopping and other channels, customers now have multiple touchpoints with retailers. As a result, foot traffic is no longer as crucial as it once was.
Instead, retailers are now focusing on the outreach component. This includes tracking how associates interact with customers, what tools they use, and the impact of their efforts on sales. This data allows retailers to identify their most successful associates and develop targeted coaching programs to improve performance.
Historically, the usage of tools was also a top KPI. However, simply tracking how many times associates log in to a tool is not a reliable indicator of success. Instead, retailers are now focusing on what associates do once they are inside a tool. This includes tracking the tasks they complete, the messages they send, and the products they attach to their messages. This data can be used to identify best practices and develop training programs to improve associate effectiveness.
The availability of new data has also led to the development of new KPIs. For example, retailers are now able to track the influence of associate outreach on sales. This data can be used to identify the associates who are most effective at influencing customers’ purchasing decisions. This information can then be used to develop targeted coaching programs to improve overall sales performance.
By focusing on the outreach component and tracking the impact of associate efforts on sales, retailers can gain a better understanding of their customers’ needs and develop more effective strategies to meet those needs.
Bringing it all together
There is a growing trend of bridge building in the retail industry, where retailers partner with external companies to access expertise, resources, and innovation.
With that bridge-building, transforming raw data into actionable insights through data activation is key to improve business decisions. With data activation, there has also been a shift in the KPIs used by retailers, moving from foot traffic to focusing on outreach components, associate interactions with customers, and the impact of associate efforts on sales. This shift reflects the changing retail landscape and the need for retailers to understand their customers’ needs better and develop effective strategies to meet those needs.
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